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RES NO 05-04-2014 CITY OF VAN BUREN, ARKANSAS RESOLUTION NO. "T 2014 BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN, ARKANSAS, A RESOLUTION TO BE ENTITLED: A RESOLUTION AUTHORIZING THE FILING OF AN ACTION FOR PROPERTY ACQUISTION FOR THE NEW SENIOR CENTER PROJECT. WHEREAS, the City of Van Buren desires to acquire certain property adjacent to the New Senior Center Project; and WHEREAS, the property was forfeited by non payment of taxes and through legal filing the City desires to acquire a clear title; and WHEREAS, the acquisition of said property is a permitted municipal purpose for which condemnation proceeding may be initiated for the public's interest; and WHEREAS, the property is specifically Lots 3 &4, Block 7, Knox Addition, City of Van Buren. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF VAN BUREN, ARKANSAS, THAT: Section 1: The Mayor or his designated representative is authorized and directed to file the necessary condemnation action and take any other steps necessary to acquire the property for the Senior Center Project. IN WITNESS WHEREOF, the City of Van Buren, Arkansas, by its City Council, did pass, approve, and adopt, by a vote of 5 for and 0 against, the foregoing Resolution at its regular meeting held on the 19th day of May 2014. UMW— Robert D. Fre I 111111 Mayor ATTESTED: APP JIVED AS TO FORM: OW' 0,0 II Barbie Curtis Candice A. Sett e City Clerk/Treasurer City Attorney IMain File No.1286371 Paae #11 LAND APPRAISAL REPORT File No. 128637 Borrower n/a Census Tract 0203.02 Map Reference 22900 Property Address N Washington St City Van Buren County Crawford State AR Zip Code 72956 '7 Legal Description Lots 3 4, Block 7, Knox Addition Sale Price Date of Sale Loan Term yrs. Property Ri Ms g Appraised ®Fee ❑Leasehold De Minims PUD Actual Real Estate Taxes 90.05 (yr) Loan charges to be paid by seler Other sales concessions Lender/Client City of Van Buren, AR (client) Address Van Buren, AR Occupant Vacant Appraiser Don W. Smith, Jr. Instructions to Appraiser Estimate market value for possible purchase. Location XJ Urban 11 Suburban [J Rural Good Avg. Fair Poor Built Up Over 75% 25% to 75% Under 25% Employment Stability Growth Rate Fully Dev. Rapid Steady Slow Convenience to Employment Property Values Increasing Stable Declining Convenience to Shopping Demand/Supply Shortage In Balance Oversupply Convenience to Schools Marketing Time Under 3 Mos. 4-6 Mos. Over 6 Mos. Adequacy of Public Transportation Present Land Use 40% 1 Family 2% 2 -4 Family 3% Apts. Condo 55% Commercial Recreational Facilities Industrial Vacant Adequacy of Unties ONCE Change in Present Land Use Not Likely Likely Taking Place Property Conpatibilty From To Protection from Detrimental Conditions W Predominant Occupancy Owner Tenant 0 -5 Vacant Poke and Are Protection Single Family Price Range 15.000 to 115,000 Predominant Value 65,000 General Appearance of Properties Single Family Age 20 yrs. to 120 yrs. Predominant Age 70 yrs. Appeal to Market Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise):The neighborhood boundaries are considered to be N 1st St to the southwest, Broadway St to the southeast, N 1 lth St to the east Poplar St to the north. The area is within 2 miles of schools, shopping, and places of worship, and about 10 miles from the major employment centers for the area. Subject property is the downtown area of the city. Dimensions 100' x 150' 15,000 Sq. Ft or Acres Corner Lot Zoning classification Residential -2 Present Improvements do do not conform to zoning regulations Highest and best use Present use Other (specify) Public Other (Describe) OFF SITE IMPROVEMENTS Topo Level to sloping Elec. Available Street Access Public Private Size Typical for the area Gas 1Z Available Surface Asphalt Shape Rectangular s Water Available Maintenance Public Private View Average San. Sewer Available Storm Sewer Curb/Gutter Drainage Appears adequate Underground Elect Tel. Sidewalk E1 Street Lights Is the property located Ina HUD Identified Special Flood Hazard Area? No [I Yes Comments (favorable or unfavorable including any apparent adverse easements, encroachments, or other adverse conditions): Site is located in Zone X, areas determined to be outside 500 year flood plain. Map #05033CO390 J, revised 12/03/2010. The appraiser was not furnished with a current survey of the subject property. Site size was obtained from the subdivision plat. Property is below the grade of the street slopes downward to the west. The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus adjustment is made thus reducing the indicated value of subject 1 a significant item in the comparable is inferior to or less favorable than the subject property, a plus adjustment is made thus increasing the indicated value of the subject. ITEM 1 SUBJECT PROPERTY COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3 Address N Washington St N 16th St 301 N Washington St 202 N Arkansas St Van Buren, AR 72956 Van Buren, AR 72956 Van Buren, AR 72956 Van Buren, AR 72956 Proximity to Subject 0.79 miles NE 0.08 miles N 0.19 miles NW Sales Price 22,500 26,500 25,000 Price per lot 2,500 6,625 8,333 Data Source Inspection;pub.recds MLS #652102; buyer MLS #9394081: Public Records MLS #9397988; Public records Date of Sale and DESCRIPTION DESCRIPTION 1$ Adjust. DESCRIPTION 1$ Adjust DESCRIPTION I Adjust Time Adjustment 04 /19/2012 08/09/2006 10/05/2007 W Location Central/Average Central/Average Central/Average CentraVAverage LL Siteew 15,000 sf (2 lots) 6,534 sf x 9 lots 17,500 16,988 sf (4 lots) 13,300 22,216 sf (3 lots) -8,300 Topography Slope below grade Slope above grade Level Slope above grade Sales or Financing Unknown Unknown Unknown Concessions Net Adj. (Total) n m 17,500 n m 13,300 n M -8,300 Indicated Value of Subject Net 77.8 5,000 Net 50.2 13,200 Net 33.2 16,700 Comments on Market Data: See attached addenda. Comments and Conditions of Appraisal: Appraisal assumes that there are no environmental hazards present on property and all utilities are available. The intended user of this report is the City of Van Buren, AR. The intended use is to estimate market value for possible purchase. Anal Reconciliation: The indicated value range is from $2,500 to $8,300 per lot or from $5,000 to $16,700 for both lots. Comparable #4 is a recent expired listing in close proximity of the subject that did not sell for an asking price of $6,500. 1 ESTIMATE THE MARIE; VALUE, AS DEFT e PROPERTY AS OF October 17 2012 t0 be 10,000 LTM ��h,. N•w/'r f ifs Physically Don W. Smith, Jr. o c Did Did Not Ph e o.. Y y InsP ect Properly A PP raisers ,y;;, /Review Appraiser (if applicable) 1Y21(] Don Smith Associates Real Estate Appraisals Form LND 'WinTOTAL' appraisal software by a la mode, inc. 1-800-ALAMODE LAND APPRAISAL REPORT IMain File No. 1286371 Pane #2I MARKET DATA ANALYSIS File No. 128637 ITEM 1 SUBJECT PROPERTY COMPARABLE NO. 4 COMPARABLE NO. 5 COMPARABLE NO. 6 Address N Washington St Lafayette St Van Buren, AR 72956 Van Buren, AR 72956 Predmity to Subiect 0.08 miles NW Sales Price Price Per lot 6,500 Data Source Inspection;pub.recds MLS #645498; Agent Date of sale and DESCRIPTION DESCRIPTION Adjust. DESCRIPTION Adjust. DESCRIPTION 1+( -t$ Adjust. Time Adjustment Expired listing -9/12 Location CentraVAverage Central /Average SiteNiew 15,000 sf (2 lots) 7,500 sf w Toyy!ra. Slo•= below •rade Slo•eabove •rade Sales or financing Unknown Concessions Net Adj. (Total) fl (l is f l I is [1+ 17— Indicated Value of Subiect Net Net Net Comments: Form LND.(AC) °WinTOTAL' appraisal software by a la mode, inc. 1-800-ALAMODE (Main File No.1286371 Pane #31 Supplemental Addendum FileNo.128637 Borrower /Client n!a Property Address N Washington St City Van Buren County Crawford State AR Zip Code 72956 Lender City of Van Buren, AR (client) Market Data Sale #1 was the most recent comparable sale found. Sales #2 #3 are older sales but located in the subject's addition. Comparable #4 is a recent expired listing from the subject's addition that was on the market for 306 days for $6,500 Sale #1 was a sale of 9 lots for $2,500/lot buyer is a real estate broker stated that he felt that they were worth twice that amount. The indicated value is from $2,500 to $8,300 per lot. The appraiser has taken into consideration that sale #1 appears to be below market value. Form TADD 'WinTOTAL' appraisal software by a la mode, inc. —1- 800 ALAMODE Main File No. 1286371 Paae #4j DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terns offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dolar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser wig not be responsible for matters of a legal nature that affect either the property being appraised or the title to lt. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included ordy to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were fumished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender /client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower, the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender /client may distribute the property description section of the report only to data cogection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6 -93 Page 1 of 2 Fannie Mae Form 1004B 6 -93 Don Smith Associates Real Estate Appraisals Form ACR 'WinTOTAL' appraisal software by a la mode, inc. 1-800-ALAMODE Wain File No. 1286371 Pane #51 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject properly or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related parry, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and /or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. B. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for 8. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: N Washington St, Van Buren, AR 72956 APPRAISER: SUPERVISORY APPRAISER (only if required): I y 7 n M Signature: G/r, A ne CERn Signature: Name: Don mi r: 11 r r..,. CD" Name: Date Signed: 10/23/2012 ct ij Date Signed: State Certification CR0848 State Certification or State License or State License State: Arkansas State: Expiration Date of Certification or License: 06/30/2013 Expiration Date of Certification or License: Did Did Not Inspect Property Freddie Mac Form 439 6 -93 Page 2 of 2 Fannie Mae Form 1004B 6-93 Form ACR 'WInTOTAL' appraisal software by a la mode, inc. 1-800-ALAMODE (Main File No. 1286371 Pane #61 Subject Photo Page Borrower /Client n/a Property Address N Washington St City Van Buren County Crawford State AR Lp Code 72956 Lender City of Van Buren, AR (client) Subject Property irJk Subject Property f'- Subject Street r, t Form PIC3x5.SR °WinTOTAL° appraisal software by a la mode, inc. 1-800-ALAMODE IMain File No.1286371 Paae #7I Location Map Borrower /Client n/a Property Address N Washington St City Van Buren County Crawford State AR Zp Code 72956 Lender City of Van Buren, AR (client) a la mode, Mc: ao Teebevnrweamtevwgr N Plaza Dr -z a 4 W g Pointer Trail T z i. 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